An individual or a legal body such as a company may be a partner in a limited partnership, either as a general or as a limited partner. A person cannot be both a general and a limited partner at the same time.

Limited partners may not draw out or receive back any part of their contribution to the partnership during its lifetime or take part in the management of the business or have power to bind the firm. If they do, they become liable for all the debts and obligations of the firm up to the amount drawn out or received back or incurred while taking part in the management, as the case may be.

This type of partnership is fairly new and must not be confused with a another new type of partnership known as a limited liability partnership, regulated by the Limited Liability Partnerships Act 2000.

All limited partnerships must be registered with the Registrar of Companies by a statement signed by the partners, including the sum contributed by each limited partner which specifies the limit of his/her liability.

Limited Partnership Agreement

Though there is no legal obligation to have a formal written document an agreement is essential to set out the responsibilities of the partners. Therefore we would strongly recommend that one be prepared. We can assist you with preparation of a flexible Partnership Agreement, making any modifications you request to meet your business needs.

The process to incorporate a Limited Partnership is made really simple by Omega Group.

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